Gross operating income +33.8% to €277.6 m
Operating income +44.2% to €181.4 m
Net income group share (excluding capital gain on Vindemia) +37.7% to €152.9 m
Paris, March 21st 2007, pdf file
"BOURBON recorded excellent results, largely influenced by the offshore business, which benefited from favorable conditions as the oil companies resumed investments and worked to boost the production of existing fields,"
says Chairman and Chief Executive Officer Jacques de Chateauvieux. "Moreover, and in line with our Horizon 2010 strategy, we are continuing our investments to expand our fleet and offer our most demanding clients worldwide the services of a full range of new generation, innovative and high- performance vessels."
| In millions of euros | End of Dec. 2006 | End of Dec.2005 | Change | End of Dec. 2005 Published |
|---|---|---|---|---|
| Revenues | 717.6 | 614.4 | +16.8% | 1 022.0 |
| Gross operating income (EBITDA) | 277.6 | 207.4 | +33.8% | 240.3 |
| Operating income (EBIT) | 181.4 | 125.8 | +44.2% | 148.2 |
| Net gains from disposal of assets & income from assets due for sale | 11.7 | 111.2 | 94.1 | |
| Net income | 164.9 | 215.0 | -23.3% | 215.0 |
| Net income, group share | 152.9 | 205.0 | -25.4% | 205.0 |
| Net income, group share (excluding capital gain on Vindemia) |
152.9 | 111.0 | +37.7% | 111.0 |
For the first time since its decision to refocus on its marine services business, BOURBON recorded 2006 results that exclusively reflect its scope as a "pure player" in marine services.
BOURBON benefited from growth in the offshore oil and gas marine services sector (+35.8%) in 2006: revenues totaled 717.6 million euros, an increase of 16.8% over the previous year.
Gross operating income was 277.6 million euros (+33.8%) after taking into account the 19 million euros profit on sales of vessels during the year.
BOURBON’s operating income rose significantly to 181.4 million euros (+44.2%), driven by the expansion of the fleet and conditions in the oil and gas offshore market, a solid performance for towage and salvage, and the increase in cargo rates that began to produce effects in the second half.
Net income group share excluding Vindemia capital gain amounted to 152.9 million euros, up 37.7%.
At end 2006 the 2003-2007 strategic plan was completed one year ahead of schedule. Over the last four years, revenues for the Offshore Division have risen 30% per year (35% at constant exchange rates) and the ambitious program to invest 1.2 billion euros in marine services has been sthinly exceeded.
Revenues for the Offshore Division totaled 376.6 million euros, an increase of 35.8% over 2005. The contracts renewed and the contracts for the 31 new vessels commissioned benefited from a very strong market. In the North Sea as well, prices reached very high levels.
| In millions of euros | End of Dec. 2006 | End of Dec. 2005 | Change |
|---|---|---|---|
| Revenues | 376.6 | 277.2 | +35.8 % |
| Gross operating income (EBITDA) | 185.1 | 115.6 | +60.1 % |
| % of revenues | 49.2% | 41.7% | |
| Operating income (EBIT) | 112.8 | 58.5 | +92.9 % |
| % of revenues | 30.0% | 21.1% |
Gross operating income amounted to 185.1 million euros (+60.1%) and includes the income from the sale of old vessels for 19 million euros. Excluding vessel disposals, the gross margin for the business was 44.1% compared with 41.8% in 2005.
Operating income rose significantly to 112.8 million euros (+92.9%).
In line with its strategy, BOURBON is positioning itself as the international leader in modern offshore oil and gas marine services.
| In millions of euros | End of Dec. 2006 | End of Dec. 2005 | Change |
|---|---|---|---|
| Revenues | 129.7 | 114.9 | +12.9 % |
| Gross operating income (EBITDA) | 40.9 | 27.9 | +46.7 % |
| % of revenues | 31.6% | 24.3% | |
| Operating income (EBIT) | 27.0 | 15.6 | +73.1 % |
| % of revenues | 20.8% | 13.6% |
The Towage & Salvage Division generated revenues of 129.7 million euros in 2006, up 12.9%.
Gross operating income was 40.9 million euros in 2006, an increase of 46.7% over the previous year, driven by the following:
Revenues for the Bulk Division amounted to 169.2 million euros, down 7.5% from an exceptional year in 2005. Volumes shipped totaled 15.7 million tons in a context of mixed trends in cargo rates: -37% compared with 2005 during the first half of the year, and +44% during the second half of 2006 compared to the second half of the previous year.
| In millions of euros | End of Dec. 2006 | End of Dec. 2005 | Change |
|---|---|---|---|
| Revenues | 169.2 | 182.9 | -7.5 % |
| Gross operating income (EBITDA) | 38.9 | 53.1 | -26.7 % |
| % of revenues | 23.0% | 29.0% | |
| Operating income (EBIT) | 35.0 | 50.1 | -30.1 % |
| % of revenues | 20.7% | 27.4% |
Gross operating income amounted to 38.9 million euros in 2006, compared with 53.1 million in 2005, a difference of 26.7%. Fluctuations in cargo rates in the market explain the changes in gross margin, which primarily impact owned vessels and vessels under long-term charter agreements. Setaf Saget customer contract policy, based on long-term relations, generates a "delayed effect" of about 6 months.
After an exceptional year in 2005, we recorded a very satisfactory operating income in 2006 (operating margin on sales of +20.7%).
The year 2007 will be simultaneously influenced by the end of the 2003-2007 strategic plan and the launch of the Horizon 2010 plan. As a result, BOURBON will benefit over a full year from the vessels delivered under the 2003-2007 investment plan, particularly in the Offshore Division, while continuing its investments under the new plan in addition to the many new orders already placed in 2006.
In terms of asset disposals, the second Vindemia put can be exercised as of 2007.
In addition, the disposal program for other non-strategic assets will continue.
2007 will benefit from a favorable context in offshore oil and gas marine services, solid assistance and towage services experienced early in the year in the ports, and high cargo rates.
BOURBON’s results will continue to be influenced by changes in the euro/dollar parity.
During the Shareholders’ Meeting to be held in Paris on May 29, 2007, shareholders will be asked to approve a dividend of 0.60 euro per share (+ 20%) and the allotment of one bonus share for every ten shares held.
With 4700 professionals and a fleet of 265 owned vessels, BOURBON offers, in more than 25 countries, a broad range of offshore oil and gas marine services, towage, assistance, salvage and bulk shipping.
By 2010, in line with its strategic plan BOURBON intends to become the leader in modern offshore oil and gas marine services by offering the most demanding international clients worldwide the services of a full line of new generation, innovative and high-performance vessels.
Classified by Euronext in the "Oil Services" sector, BOURBON is listed on Eurolist Paris, Compartment A and is included in the Deferred Settlement Service (SRD) and the SBF 120 and Dow Jones Stoxx 600 indices.